Your down payment isn’t the only sum of money you’ll need when buying a home. Closing costs can add up.
When clients are so focused on what their down payment is going to be or what their monthly mortgage payment is, they forget about the closing costs, which can be significant. We like to bring up closing costs with our buyers up front just so there are no surprises later.
When you purchase a home with a loan, there are a surprising number of associated closing costs. There are lender fees, underwriting fees, appraisal fees, property taxes, and homeowners insurance that will all be required by your lender.
In addition to those costs, there will also be a title insurance policy as well as escrow and notary fees. The total cost usually ends up being 1% to 2% of the purchase price. On top of these closing costs, you’ll also have to set aside $400 to $600 for inspection fees. You should also keep in mind that you may want to set some more money aside for when you move in. You may want to repaint or buy new furniture.
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Interest rates are still incredibly low.
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Don’t let these closing costs deter you from purchasing the home of your dreams. Interest rates are incredibly low, giving you a great opportunity to capitalize on your home purchase. We just heard from our preferred lender that rates are around 3.35% for a 30-year conventional loan.
The biggest piece of the puzzle to solve is finding the right Realtor and lender. When you're working with the right people, you will definitely have a successful transaction. If you have any questions for us, feel free to reach out and give us a call or send us an email. We look forward to hearing from you soon.
